A bank created fake accounts, forced clients into unnecessary car insurance and repossessed vehicles when they didn’t pay. Now it has agreed to $20 million in penalties | CNN Business
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Fifth Third Bank on Tuesday said it agreed to pay $20 million in penalties imposed by the Consumer Financial Protection Bureau to settle a CFPB investigation into its auto insurance practices, and a 2020 lawsuit the agency filed pertaining to the bank’s creation of fake customer accounts.
  • SirSamuel@lemmy.worldEnglish
    6·
    4 months ago

    These shitbirds never change.

    In the mid-00’s they had a policy where they would rearrange your debits for the day from largest to smallest. Let’s say you had $50 in your account and the following expenses:

    • $25 fuel 9:00
    • $10 McDicks 12:00
    • $2 candy bar 15:00
    • $55 Groceries 17:30

    Instead of denying the last purchase, or doing what the other shitheels do and charging $30 for the overdraft, Fifth-third (yes that’s how you say that dumbass name) would rearrange the debits so that you now incur four overdraft fees.

    It was bad enough that a class action suit was brought against them. My wife got a whole $90 payout after sending receipts for over $600 in accumulated spurious overdrafts. (As a side point, she’s much better with money and bookkeeping now).

    I want to be clear, I have no intention of taking the law justice into my own hands. That being said, if I had a mental break and decided to do a little light culling, the deciders for 5/3 would be near the top of the list

  • AutoTL;DR@lemmings.worldBEnglish
    2·
    4 months ago

    This is the best summary I could come up with:

    “Fifth Third Bank demanded borrowers pay for coverage they did not need or else face delinquency, additional fees and repossessions,” the agency said in a statement.

    And the agency is ordering the bank “to clean up these broken business practices or else face further consequences,” CFPB director Rohit Chopra noted.

    In addition, CFPB said Tuesday that it had filed a proposed court order that would require the bank to pay $15 million in penalties pertaining to practices that incentivized employees to create fake customer accounts.

    The proposed order also bans Fifth Third “from setting employee sales goals that incentivize fraudulently opening accounts,” CFPB said.

    “We have already taken significant action to address these legacy matters, including identifying issues and taking the initiative to set things right.

    In 2015, the bank was ordered to pay $18 million to harmed Black and Hispanic borrowers in what CFPB charged was discriminatory auto loan pricing.

    The original article contains 400 words, the summary contains 151 words. Saved 62%. I’m a bot and I’m open source!